Survey: HK's entertainment and media revenue expected to hit US$14bn in 2028

Hong Kong’s entertainment and media (E&M) growth is expected to remain steady, with revenue expected to reach US$14bn in 2028, PwC’s latest report finds. 

According to PwC’s “Global Entertainment & Media Outlook 2024 to 2028” Hong Kong summary, the local E&M revenue saw a slight increase of 4.5% year-on-year growth in 2023. The market is forecasted to slow down to 2.3% and reach US$12.87bn in 2024. 

Projections show E&M growth in Hong Kong will have a steady compound annual growth rate (CAGR) of 2.06% between 2023 and 2028, with revenue expected to reach US$14bn in 2028. 

Hong Kong's E&M revenue will be dominated by consumer spending (74%), the conversion trend is in line with global, excluding mainland China. 

There has also been a shift from consumer spending to advertising spending, due to the rise of digital platforms and streaming services, with more people opting for digital content over traditional media. Many entertainment and media companies in Hong Kong are shifting towards subscription-based models, which has led to a decline in revenue from the sales of physical media, said the report. 

With more players in the streaming market such as Netflix and Disney+, Hong Kong's over-the-top (OTT) market has grown rapidly in the last two years, reaching US$371m in 2023. The market will continue to expand at 5.7% CAGR to reach US$491m in 2028.  

On the other hand, Hong Kong's business-to-business (B2B) market was the fastest growing in the world in 2023, making a YOY gain of 21.4% to US$814m. The B2B segment is on course for higher growth than its global and Asia Pacific counterparts between 2023 and 2028. 

The local trade shows market’s revenue has reached US$447m with 45.9% growth in 2023 and it will grow at 5.5% CAGR, to reach US$585m in 2028. 

Hong Kong's advertising will be dominated by digital in 2028 (68.1%), when compared to that in 2019 (32.7%). The conversion trend is also in line with global, excluding mainland China. Internet advertising in Hong Kong continues to grow at 3.7% CAGR, at US$1.9bn in 2028 from US$1.6bn in 2023.  

Local paid search advertising has the highest growth of internet advertising to reach 32.65% of the market by 2028. Its revenue will grow at a CAGR of 6.8% between 2023 and 2028, compared to 3.69% of the whole internet advertising segment.  

Retail paid search internet advertising will grow at 10.06% from 2023 to 2028, driven by the acceleration of eCommerce and the rise in online shopping. 

In terms of traditional media, the total broadcast TV advertising revenue in Hong Kong is forecasted to grow at a 0.84% CAGR, reaching US$359m by 2028. The market is driven by TV advertising income, which is expected to account for 63.9% of total traditional TV revenue by 2028.

Live music in Hong Kong has rebounded since the pandemic and is expected to reach US$201m in 2024, well up on the US$121m reported in 2019. This sum should continue to grow, reaching US$216m in 2028, at a 2.34% CAGR. This is also driven by the increase in mega concerts in the city, with British rock band Coldplay coming next year. 

Related articles:

Survey: HK entertainment and media revenue up 5.6% YOY in 2023
Sony Music Entertainment picks new MD for SG, MY and Vietnam